- •Introduction
- •Terms of reference
- •Prioritization
- •3.1 Top priority – Proposal to expand into corporate advertising videos
- •3.2 Second priority - Fee negotiation for new children’s programme
- •3.3 Third priority – Re-commissioned drama series
- •3.4 Fourth priority – “Banks – friend or foe?” – a new documentary by vyp
- •4.0 Discussion
- •4.1 Proposal to expand into corporate advertising videos
- •Variant 1
- •Variant 2
- •Variant 3
- •1.Sutability of the market
- •2. Acceptability
- •3. Feasibility
- •4.2 Fee negotiation for new children’s programme
- •4.4 “Banks – friends or foe?”
- •5. 0 Ethical issues and recommendations on ethical issues
- •Recommendations
- •6.1 Proposal to expand into corporate advertising videos
- •6.1.1 Recommendations
- •1) Short-term recommendations
- •2) Long – term recommendations
- •6.1.2 Justification
- •6.1.3 Actions to be taken
- •6.2 Fee negotiation for new children’s programme
- •6.2.1 Recommendations
- •1) Short-term recommendations
- •2) Long-term recommendations
- •6.2.2 Justification
- •1) Short-term recommendations
- •2) Long-term recommendations
- •6.2.3 Actions to be taken
- •6.3.1 Recommendation
- •6.3.2 Justification
- •6.3.3 Actions to be taken
- •6.4.1 Recommendation
- •6.4.2 Justification
- •6.4.3 Actions to be taken
- •Conclusion
- •Appendices
- •Appendix 3. Porter 5 forces analysis. Independent tv production industry
- •Bargain power of customers: High
- •4. Threat of substitute products: Medium
- •If programme ideas are innovative, then there is no threat
- •5. Intensity of competitive rivalry: High
- •Appendix 4.The market growth potential - pest analysis
- •Appendix 5. Industrial and financial analysis.
- •Appendix 6. Profit and Margin for 3 variants of actor’s salary. Номер!!!)
- •Appendix 7.
6.2 Fee negotiation for new children’s programme
6.2.1 Recommendations
1) Short-term recommendations
We strongly recommend VYP maintain IP rights to the original characters of Sammy the Squirrel in return for a 35% drop in fees from the broadcaster.
As VYP has little experience in this new area we suggest that it should license out all or a part of its merchandising rights to potential merchandisers charging reasonable fees.
The possibility of hiring a merchandising manager should also be taken into consideration. According to MySalary.co.uk, the average salary for a Merchandising Manager in the UK is £37,000 per month2, which is a minute when compared to the projected revenue.
2) Long-term recommendations
As for the long-term recommendations, VYP should consider opening its own VYP Shop stocking a catalogue of programme related merchandise as well as a complement e-shop.
It would also be a good idea in terms of VYP’s strategic projects to secure its high position overseas and in American TV-production market in particular by establishing its representative office in the USA, following the example of Ragdoll Productions, who opened their office in New York in 2002, having been programming on PBS networks for 7 years by that time.
6.2.2 Justification
1) Short-term recommendations
For V and Y Productions, licensing out to potential merchandisers may provide the following benefits:
First of all, licensing out IP rights to other companies can generate lucrative license fees and royalties. It also allows VYP to enter new product categories in a relatively risk-free and cost-effective way.
Merchandising is also likely to become an invaluable marketing tool, as it Sammy the Squirrel’s brand exposure, enhances the brand’s image, and leads it to new markets.
2) Long-term recommendations
Figures released by BBC Worldwide, the broadcaster of the Teletubbies, reveal that the show has been seen in more than 120 countries and translated into 45 languages. Since its launch in 1997, Teletubbies has sold more than 33 million DVDs and more than 50 million plush toys, and the property has generated more than $3.2 billion in revenue worldwide. So why not VYP’s executives given the rave reviews of the show do their best to achieve similarly notable success with their Sammy the Squirrel?
6.2.3 Actions to be taken
Search for potential licensees. Look actively for potential users of your IP assets, and convince them of VYP’s commercial potential. In order to find possible licensees, the board should resort to help of licensing associations, such as the International Licensing Industry Merchandisers’ Association (LIMA).
Select the right licensee and merchandising manager if needed. The licensee who will manufacture and sell the merchandise goods should be a trustworthy and diligent partner. This may be either a specialized merchandising company, or a professional designer.
Plan a long-term strategy. Teletubbies’s marketing plans began to take shape in January 1996, more than a year before the launch. That is why in order to ensure the success of Sammy the Squirrel in merchandising market talk to licensees in key product areas to build faith early on.
Make sure VYP is able to satisfy increasing demand in peak seasons (before Christmas in particular). Learn from Teletubbies’s past mistakes. Their stocks were low and demand had far outstripped supply.
Assess foreign markets. It is strongly recommended that VYP should use merchandising to gain access to new foreign markets. Usually, the licensee will be fully responsible for local manufacture, localization, logistics and distribution.
Protect your IP in all relevant markets. IP rights are territorial, so it is necessary to obtain protection in all potential export markets in due time. Take action against infringement. It is up to you, as the IP right holder, to identify any infringement or counterfeiting on your IP rights and to decide what measures should be taken.
6.3 Re-commissioned drama series